PUBLIC-PRIVATE LINK TOUTED FOR CENTER

DAN UHLINGER; Courant Staff WriterTHE HARTFORD COURANT

A lawyer for the town's bond counsel Monday night extolled the benefits of a public-private partnership for building and operating a health and recreation center at the proposed Evergreen Walk development.

David M. Panico, a Robinson & Cole lawyer, told a skeptical town council that the partnership could insulate taxpayers from the debt incurred from the center.

Town Manager Matthew B. Galligan and his staff have talked with Eastern Connecticut Health Network, the parent company of Rockville General and Manchester Memorial hospitals, about forming a partnership.

Local officials would like to build a $12.7 million center, which would help meet many of the town's recreation needs over the next 20 years. The center would house a gymnasium, a fitness facility, an indoor swimming pool with lap lanes, locker and meeting rooms, a concession area, office space and an area for child care.

Under the agreement, a municipal authority, or nonprofit corporation, would be formed to operate the center -- at no cost to taxpayers -- with revenues from user fees and the lease agreement, officials have said. The authority would sell tax-exempt bonds to raise money for the center's construction.

"A nice feature is we think you could do the project on a tax-exempt basis," Panico said. "I think this project is a feasible project."

But most council members were skeptical of a partnership, fearing that the town could be held liable for a debt if the health network changed ownership or went out of business.

Council members asked dozens of questions about the town's financial exposure and whether similar partnerships exist elsewhere.

Panico said partnerships have been created in Norwalk and other towns, but none of the agreements was quite like the one envisioned in South Windsor.

"It seems like there's a lot of pros and cons," said council member John Pelkey, who seemed to favor the project if it were structured properly for the town.

Galligan tried to reassure the council that a feasibility study would have to be made by an independent consultant before the town entered into an agreement.

Council member Matthew Streeter said he feared that some taxpayers would view the partnership as a way of avoiding voter approval. Panico said a referendum would not be required for the creation of a partnership.

The partnership would purchase the land from Evergreen Walk, LLC, a group that was formed for buying and developing about 235 acres on Buckland Road, north of the Plaza at Buckland Hills in Manchester. The development would include hotel, retail, restaurant, office, entertainment and recreation facilities.

The hospitals would use about 25,000 square feet of the 85,000-square-foot center for medical and health programs. The rest of the space would be used for town recreation programs.